HYSA rate history: how savings APYs moved with the Fed (2019–2026)
Savings APYs dropped to near zero in 2020–2021, then surged past 5% in 2023 as the Fed hiked rates 11 times. Here's the full timeline.
Savings APYs hit a generational low of 0.05% in 2020 as the Fed cut rates to near zero during COVID-19. They remained depressed through 2021. Then the Fed began hiking in March 2022 — 11 rate increases totaling 5.25 percentage points — and online bank HYSAs surged past 5% APY by mid-2023.
The Fed began cutting rates in September 2024. Three cuts of 0.25% each brought the federal funds rate from 5.25–5.50% to 4.25–4.50% by year-end. HYSA rates followed, easing from 5.0–5.25% peaks to 4.25–4.60% today.
The key lesson from the rate cycle: large banks never passed the Fed hike to savings customers (Chase and BofA stayed at 0.01% throughout). Online banks passed most of it through. The savers who moved funds to online banks in 2022 earned an extra $2,000–$3,000 on a $50,000 balance over two years.
Last updated 2026-04-01 · FDIC National Rates and Rate Caps
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FAQ
When did HYSA rates peak?
The highest rates appeared in mid-2023, when some online banks briefly offered 5.00–5.25% APY. This coincided with the federal funds rate reaching its cycle peak of 5.25–5.50% in July 2023.
Will HYSA rates go higher again?
Rates follow the federal funds rate. For HYSAs to return to 5%+, the Fed would need to raise rates again — which requires significantly higher inflation or other economic conditions. Most forecasts as of early 2026 suggest rates staying in the 4.00–4.50% range near-term.
What happened to HYSA rates in 2020 and 2021?
The Fed cut the federal funds rate to 0–0.25% in March 2020. Online bank HYSA rates, which had been as high as 2.10–2.25% in 2019, fell to 0.40–0.60% within weeks and stayed near zero through 2021.
How quickly do HYSA rates change after a Fed decision?
Most online banks update rates within 1–2 business days of a Fed rate decision. Some (like Marcus) have been known to update the same day. Large traditional banks rarely change their standard savings rates regardless of Fed actions.
Sources
- FDIC National Rates and Rate Caps (Q1 2026)
- Federal Reserve H.15 Selected Interest Rates (Q1 2026)
For general guidance only — individual results vary. Not financial, legal, or tax advice.